Solgold Share Discussion Threads

[alwaysevolving] 27/6/2019 08:57

Good news indeed. No more regional government meddling guaranteed.

Once that fact sinks in we should finally be able to say goodbye to the 30s on the next piece of good news? It should also have reassured the big boys that Solg is a very sound investment for the future. Now I wonder when that bid is going to arrive.....?

[dmitribollokov] 27/6/2019 08:04

Building up for a nice inverse H+S on the chart now, lovely.

[dmitribollokov] 27/6/2019 07:55

“A popular consultation in a region or province that is not a national referendum may not consist of a question that would imply legal reform by amending or new legislation. The future of mining in Ecuador is therefore to be determined by the Ecuadorean Federal government.”

That last sentence is pretty unequivocal. Game on.

[goldrush] 27/6/2019 07:53

Hyper

Indeed.

I have no problem people trying to trade and hoping to get back in lower than they sold......BUT Todays news is rather GOOD

[paleje] 27/6/2019 07:52

Good news, clarity provided by the court. Even if an anti mining gov gets elected in the future, can't see it cutting off such a vital part of the economy.

[hyper ai] 27/6/2019 07:45

lol
horrible to be out of a stock and feel compelled to read BB threads about it hoping for bad news

[goldrush] 27/6/2019 07:45

Price should be strong today....IMHO

[1garythomas] 27/6/2019 07:31

Got a general election within 18 months, so could all change again, opposition party are against mining.

[telbap] 27/6/2019 07:20

We ought to see a bump from this today for sure.

[1garythomas] 26/6/2019 16:42

32.65 finish, down again.

[shabadi] 26/6/2019 12:13

I agree Gary, if it drops below the 30's then I might be buying. Assuming we don't see another challenge (quite possible), if so then low 20's.

[shakester2] 26/6/2019 09:25

Well done genius

[1garythomas] 26/6/2019 08:59

With no news expected until year end, MRE, this now looks like drafting to the 20s again, so glad i sold half at 40p and the other half at 34.5, maybe looking to get back in at 27p.

[zoros1] 25/6/2019 22:14

The property is in the margin of the Eocene and Miocene metallogenic fringes, which are famous for housing some of the largest copper and gold porphyry deposits in the world," explains the company.

His interest was met with that of the Ecuadorian government, which in recent years promotes mining activities - along with oil companies - as one of the main sources of income for the country.

In his speech of accountability last May, President Lenin Moreno put the accent on this sector.

"32,000 direct and indirect jobs will arise from an investment already collected of 2,000 million dollars in the mining sector that will exceed 3,800 million dollars in 2021," he said.

"Mining is the economic solution for the country," said vice minister of mining Fernando Benalcázar at the end of last year.

Last year, large-scale mining was the main reason foreign direct investment doubled compared to 2017.

According to data from the Central Bank of Ecuador, the exploitation of mines and quarries attracted US $ 742 million, more than half of the total US $ 1.4101 million received.

"But in the last ten or twelve years, the mining sector has hardly participated in the Ecuadorian economy, and now, with projects like Cascabel, we will see the possibility of fulfilling all these expectations and we will be able to value them", says Flores.

"Given this expectation of achieving higher revenues, the government has the challenge of guaranteeing a new version of extractivism based not on oil but on mineral, and also considering the environmental impact perspective," he adds.
Opposition of ecologists and communities

Indeed, despite the flattering figures put forward by the concessionaire company and the government, Cascabel also has strong opposition from groups that maintain that the project is an attack on the biodiversity of the area.

Four nearby communities asked the Constitutional Court to hold a popular consultation on the development of mining activity in this area.

However, the court rejected his request last Thursday when he considered that the consultation proposal did not comply with all the formal requirements, although he clarified that he did not enter to examine the origin or not of carrying out this type of consultation among the citizens.
Copyright of the AFP image

Before the decision of the court, President Moreno had already warned about the consequences of authorizing consultations on mining areas that have already been legally granted to foreign companies.

"If any mechanism is authorized that implies a breach that, sooner or later, obliges us to pay compensation, I ask that you also invite the people to decide where these resources will come from and what the sources of financing will be, which would replace the income to which we should resign, "Moreno said in reference to the judges of the Constitutional Court.

Environmental groups also seconded this petition to the court so that the population could decide on the management of natural resources that are of national interest.

Social organizations are calling on President Moreno not to issue new concessions for mining exploitation, and criticize that other projects in the country have caused serious violations of human rights and nature, ranging from water pollution to aggression against people.

But not all the inhabitants of the area are opposed to Cascabel.

During a visit to the project in which some neighbors met issues such as water treatment in the project carried out so that "the environment is not affected in any way," according to those responsible, the president of the El Carmen community, Marcelo Tobar, denounced "threats from other communities" for supporting SolGold.

"The company offered us work and they are fulfilling, we are working (...) We want the development of all, do not let yourselves be carried away by bad arguments," he said.

[zoros1] 25/6/2019 22:10

According to the company, which announced that the project has already generated 500 direct jobs and could potentially employ 7,000 people, the construction of the mine could begin at the end of next year.

Flores, despite acknowledging that there is no possibility of making comparisons in the absence of other mining projects of the size of Cascabel, recommends taking with caution the forecasts of economic impact raised by the concessionaire and the government.

"To get an idea, the Ecuadorian economy generates an average of US $ 100 billion, which means that what the Minister of Energy expects is a growth in the mining sector, from the current 1% to around 4-5% of the GDP in the next three or four years, " he tells BBC Mundo.

In the opinion of the Economics professor at the Pontifical Catholic University of Ecuador, "these expectations have to be looked at with much, much reserve, because these cycles have legal, productive or export processes, among others, that must be analyzed as the project progresses to really realize its economic impact. "

[zoros1] 25/6/2019 22:09

Pérez highlighted the high figures of private investment that, according to his calculations, will promote the development of the project that, according to the company, will have a useful life of between 49 and 66 years.

"Before the mine starts producing one gram of gold or one ton of copper it already reaches US $ 2,800 million, while during the useful life of the project a capital of around US $ 26,000 million will be required".

According to the minister, this will result in important benefits in terms of employment, infrastructure, taxes and royalties, as well as "investment in social compensation works or care of the environment," he said.

Based on the figures made public, the Ecuadorian economist Rubén Flores calculates that Cascabel would imply "according to the rules, agreements and contracts, around US $ 1,326 million for the government on the side of taxes".

The economic evaluation proposes four scenarios for the production by means of an underground exploitation method and not an open pit, due to the deep level in which the resources are found.

[zoros1] 25/6/2019 22:08

There were great expectations about the capacity of their reserves. Finally, it was confirmed as one of the ten most important gold, copper and silver mines in the world.

The Cascabel mining project in Ecuador, operated by the Australian company Solgold, was identified as one of the largest in the country and an important source of income for a State that relies on the export of minerals as one of its main development opportunities.

According to the Preliminary Economic Assessment released by the concessionaire, it is estimated that Cascabel reserves would make it the largest underground silver mine, the third largest gold mine and the sixth copper mine in the entire planet.

In response to these figures, the government of Ecuador did not hesitate to highlight the benefits that this will imply for investment and job creation in the country and in the province of Imbabura, in the north of the country, in particular.

What is the largest gold mining company in the world (and in which countries of Latin America is it present)?
"It's a Gruyere cheese": the pitted subsoil that threatens Zaruma, one of the most beautiful cities in Ecuador

However, environmental organizations and some communities in the area oppose the project and even came to ask for the pronouncement of the Constitutional Court in this regard.

But what can be the economic impact of a project of the size of Cascabel for a country that is increasingly betting on the mining sector?
Millions of foreign investment

Solgold's study calculates that in the Alpala deposit there are reserves that reach 10.9 million tons of copper and more than 23 million ounces of gold.

The information was released on June 12 by the company's CEO, Jason Ward, at a ceremony attended by the Minister of Energy and Natural Resources of Ecuador, Carlos Pérez, and representatives of the mining sector.

[dmitribollokov] 25/6/2019 22:04

The gap will close, we’ll bounce on. 1,2,5 years people will laugh at this valuation and wonder why they weren’t more long.

[lefrene] 25/6/2019 20:45

but.......it's in Alice in Wonderland's back yard. Investors need a strong message from the government about how serious they are in backing responsible mining.

This parish council stunt will have made a deep and wrong impression on the heavy hitters that Ecuador needs to get it's mining project underway.

[arcadian] 25/6/2019 17:49

Pob

Thanks for that. It looks really great but...…..



PS Mog says on LSE that if you open it in Chrome it will translate. Could someone with Chrome oblige.

TIA

[pob69] 25/6/2019 13:53

Enjoy a lengthy BBC editorial article on #cascabel Solgold $SOLG $SOLG.L $CGP #ecuador

"The economic impact in Ecuador of Cascabel, the largest underground silver mine, third gold and sixth copper mine in the world"

[mikalan] 25/6/2019 09:45

What is the next catalyst for growth?

Clearly getting the court case out of the way was one, but some damage to confidence was done as a result, hence we've not got back to pre CC value.

What next? Drill permits would be good, but are these likely to happen any time soon?

A take over bid would be excellent, but that would come out of the blue, so is unpredictable.

I think that those who hold and wait for one of the above will be well rewarded, but patience is required IMO

[mam fach] 25/6/2019 09:08

So so undervalued . Can’t convince masses of true value . Only the faithful posting here. Must be even more demoralising fir NM & the team.